A Guide to ERP Success

Enterprise resource planning (ERP), client/server applications for managing accounting, manufacturing, distribution, and human resources, are the de facto backbone of business intelligence. However, while many organizations consider the introduction or enhancement of an ERP solution, the significant and well-publicized challenges associated with ERP implementations often daunt them. According to Gartner Group, "…for 40 percent of enterprises deploying ERP or ERP II systems through 2004, the actual time and money they spend on these implementations will exceed their original estimates by at least 50 percent (.07 probability). Many enterprises have suffered spectacular project failures due to unplanned or underplanned implementation projects."1

Reliably predicting implementation costs and the time required for implementation are two key outcomes of successfully planning an ERP initiative. Organizations must be able to accurately predict costs, resources, and requirements, and develop a plan of attack both before the implementation begins and throughout the project.

1 Frey, Ned; Karamouzis, Frances; Phelan, Pat; Zrimsek, Brian. 2001. Estimating Time and Cost of ERP and ERP II Projects: A 10-Step Process. Gartner (online).

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